Professor Dave Adamson and Dr Mark Lang

April 2014

The Deep Place Study is an attempt to imagine a different future for communities in Wales. In search of a solution for continuing inequality and poor economic performance we have asked a key question:

What type of economy and society do we need to create to achieve economic, social, cultural and environmental sustainability by 2030?

Inevitably a report that asks such a fundamental question requires both a lengthy and complex answer. This Executive Summary can only signpost the detailed discussion, and the case studies and the Action Points we have developed in the main report. Whilst we replicate the Action Points in this summary, we urge readers to fully consider main report as we believe that communities in Wales deserve a little of our time now to begin mapping the steps to a more certain and prosperous future. Our report draws on wide experience to suggest how we can follow exemplars from Wales and beyond

to achieve both social justice and environmental sustainability. None of our proposals are new, and indeed their strength lies in that they are already taking place somewhere and have proved their value. However, we have brought these together in a more holistic methodology that takes a single place, Tredegar, to illustrate how a concerted and joined-up programme of change could transform the future. Consequently, this report is concerned with place, and how a focus on place can be a powerful mechanism for managing public policy interventions. It sees this focus as the most appropriate and effective means to address two significant and, we argue, interconnected social policy problems: how to overcome the inequitable distribution of wealth, and the unacceptable agglomeration of poverty in post-industrial areas and, how to effectively adjust both personal and civil lives and practices toward a more ecologically sustainable economic model. The report is a critique of the dominance of the Neo-Liberal economic paradigm, which effectively ‘frames’ not only economic policy (Williams et. al., 2013), but also social policy. Neo-Liberalism sees the poor as a victim of their own failings, rather than as a consequence of the uneven distribution of wealth and opportunities, that we argue is an

inevitable consequence of the Neo-Liberal model itself. In this assertion we are not alone and are, for example, supported by the recent Report of the Welsh Cooperatives and Mutuals Commission (2014), which makes similar arguments. This Report, in addressing these concerns, recalls some of the central principles of Keynesianism, but imbues them with contemporary concerns for poverty eradication and environmental protection. It seeks to develop a vision for a future that is not scarred by poverty, educational attainment gaps and health inequalities. We identify the need for a ‘New Settlement’ on a scale not seen since the Beveridge Post-War Settlement that led to the creation of the modern welfare state.

Although place-based approaches to social and economic problems are not new, we develop a new ‘Deep Place’ methodology, which has been used throughout this research process. Our approach to place is influenced by a number of theoretical traditions. Analysis of social exclusion, which has been a long-standing preoccupation of one of the authors, provides an important mechanism for understanding why certain places become

3

disconnected from the mainstream economy and society. Although we recognise its limitations, our approach has also been influenced by Transition Theory, which connects global environmental conditions with local action. Planned resilience is a central consideration for Transition Theory, and is based on the idea that food and fuel security are best assured if they are locally planned, rather than being dependent on precarious and environmentally costly, long supply chains. In order to overcome some of the limitations of Transition Theory, particularly its limited perspective on public service reform and over-emphasis of individual consumption patterns we are also influenced by the ‘Foundational Economy’ model developed by Williams et. al. (2013). The Foundational Economy “…is very large, mostly unglamorous, rather heterogeneous, and is distributed across the country. It is an economy that meets everyday needs by providing taken-for-granted services and goods such as care, telecommunications or food” (Williams et. al., 2013, p. 3). Our approach to Deep Place is predicated on our support for the Foundational Economy model, within which 40% of the UK workforce is employed, as the principle means to achieve local economic growth. Deep Place is also influenced by the Total Place approach to planned public service reform, of which

there were 13 pilot areas across England during the final years of the last UK Labour Government. The Total Place approach was predicated on close relationships between service users and service deliverers, on ‘situational leadership’, and on unified budgeting. Although Deep Place is contextualised within this spectrum of theoretical traditions, by definition its precise application is place specific.

As the application of Deep Place is location specific our research has included a substantial case study. Although a number of locations were considered, the Deep Place Study focuses on Tredegar in the South Wales Valleys. Tredegar was selected as it is a typical South Wales Valleys disadvantaged community with a broad range of challenges and opportunities. It is also compact enough to allow for a meaningful depth of area-based analysis. The research methods have been both desk-based quantitative, and qualitative. We have also seen this as an action-based research approach in that the forums and dialogues we have established have themselves influenced policy and delivery in the area. In continuation of this we hope our published report will be a major catalyst for change in internal community perceptions as well as in the external perceptions of agencies providing services to Tredegar. A project Steering Group was

established (membership of which is detailed in the appendix to the main report), and as well as one-to-one meetings with key delivery partners and community representatives, a series of focus groups were held around the key policy areas considered, as well as a community engagement event. These qualitative engagements were instrumental in helping to form the arguments contained within this report, although the authors remain responsible for the findings. We are extremely grateful to all those who have engaged with the research process, without whom the Deep Study would not have been possible.

Our report argues for a more localised economic model for Tredegar, which we believe can both eradicate poverty and achieve sustainability. We do not suggest that there should be a separation of the Tredegar economy from mainstream economic activity, as the Welsh economy itself is intricately connected to the UK, European and global economies. We do suggest, however, that a semi-autonomous local economy would be better placed to enhance the foundational economy through localised supply chains and patterns of employment.

Our report argues for a more localised economic model for Tredegar, which we believe can both eradicate poverty and achieve sustainability.

Welsh Government must comprehensively address the development and expansion of the Foundational Economy in future economic policy, resource allocation, business promotion and regional strategy. This does not require abandonment of current strategic programmes, but requires a redirection of significant resources to the promotion of a more localised form of economic activity grounded in the Foundational Economy.

Blaenau Gwent CBC, and any successor local authority following proposed mergers, should commit fully to the protection and development of the foundational economy, with the development of a Local Foundational Economy Strategy. This strategy would provide the optimum approach to creating employment in communities such as Tredegar.

We are currently unable to identify an existing organisation that could take forward a local food initiative in Tredegar. We suggest the Blaenau Gwent CBC and Gwent Association of Voluntary Organisations (GAVO) collectively explore the potential for developing social enterprises that target local food production. This is likely to be at a modest scale initially, but the full potential to develop this sector should be thoroughly investigated.

At this stage we recommend a comprehensive GIS-based mapping exercise to identify appropriate available land, especially that owned by the public sector and available for asset transfer to social enterprise organisations. Early development of this sector will require subsidy and the forthcoming ERDF programme for Wales should be fully utilised to begin the development of a food sector in recognition that, by 2030, this may be a requirement rather than an aspiration.

We identify four key local economic ‘sectors’ that are critical to the future success of a more localised economy in Tredegar: food; energy conservation and generation; the care sector; and, e-commerce and employment.

We recognise that the first of these sectors, food, is currently dominated by the national supermarket chains and there is very little interest in overturning this position outside of a largely middle class preoccupation with local food. We argue, however, that there are serious implications of the current food model, particularly the environmental and food security problems associated with long supply chains. Although we identify significant obstacles to the more localised production of food in Tredegar - such as the local climate requirements of large-scale heated greenhousing, lack of immediate proximity to affluent markets for local food and the local food market capacity - we nevertheless argue that more localised food production is a requirement to achieve a successful transition to a sustainable community. We also suggest that access to good quality food choice is dependent on increased disposable income, and that food should be seen as part of the wider transition of the local economy aimed at achieving greater financial capacity and increased disposable incomes.

5

We urge the development of a special purpose vehicle (SPV) designed to bring Tredegar to a low carbon standard, in which all homes have their carbon performance improved to their individual full capability. We suggest the ideal agencies to develop the SPV include the local authority, Melin Homes (ARBED delivery agency for South Wales) and Tai Calon the major RSL in Tredegar. The SPV can assemble funding opportunities from the sources identified above to develop a 10-year programme of energy conservation, which will underpin an exemplar energy transition in Tredegar.

Welsh Government should charge Natural Resource Wales with the creation of a Unit to promote local energy production and assist communities to develop an ‘Egni Newid’ movement in Wales, which recognises the diversity of rural and urban possibilities in renewable energy development. This should explore all potential renewable sources including those that have yet to emerge in Wales, such as bio-gas and solar PV farming.

Building on the work commissioned by the now defunct EVAD Development Trust, NRW and Blaenau Gwent County Borough Council should explore the micro-hydro sources identified in the locality of Tredegar to pilot a community owned generation capability. Further work should be instigated on development of additional sources of generating at this local level, including bio-mass feedstock development from native feedstock and willow cropping.

This may require the development of a local delivery vehicle in the absence of a current development trust to provide leadership in this critical element of Tredegar’s attainment of sustainability by 2030. Any vehicle that emerges to provide this function should comprehensively network with European counterparts, and specifically develop capacity to tap any EU funding programmes that follow on from the European Energy Efficiency Facility (EEEF), which regrettably ends in March 2014, too late to support the objectives identified here.

Energy conservation and energy generation are also significant to the transition to a more localised economy in Tredegar.

We recognise that UK energy supply is dominated by the large utility companies, but that there are significant weaknesses attached to the fuel security of the model which is highly dependent on imported liquid gas. UK energy policy has moved away from energy conservation and renewables, toward ‘clean’ gas, nuclear and more recently ‘fracking’. This is a highly centralised and externally controlled model of energy supply and currently highly dependent on unsustainable supply models. The ‘community renewable’ sector in Wales is currently under-developed in comparison to wider European experiences and we highlight a number of European case studies of localised approaches to community-based energy supply that address the issues of energy security and environmental impact.

We also consider the important role of the care sector in the local economy of Tredegar. Tredegar has an aging population and there are growing care needs. Although local authorities spend a significant proportion of their budget on social services, we suggest that the existing elderly care model in Wales, 70% of which is provided by the independent sector (UKHCA, 2013), does not provide sufficient good quality care at a reasonable cost to beneficiaries. We argue that a restructuring of social care on a local social cooperative model would be an essential element of the foundational economy. We point to a number of international case studies for practice where this has had a positive effect on care levels and standards, as well as making the most of the care spend to promote local employment.

Welsh Government should build on the findings of the 2014 Commission on Co-operatives and Mutuals to explore the social care cooperative model further and provide a legislative and funding environment to promote its development. Welsh Government should further promote the duty on local authorities of direct payment of social care costs identified in the Social Services and Wellbeing Bill.

Blaenau Gwent CBC and Aneurin Bevan Health Board should explore the model further for its commissioning of elder care services to ensure that procurement practice and funding regimes promote the development of the social care cooperative sector in Tredegar.

Cooperative and social enterprise development agencies in Wales should develop a pro-active programme of social care cooperative development.

The e-commerce and employment sector will require support and employer cultural change, but we suggest that the creation of local infrastructure at the Ebbw Vale Works site, and a ‘meanwhile use’ business incubator facility at Tredegar could, if supported by relevant skills training, offer a significant contribution to the local economy. E-commerce offers opportunities for trading and enterprise from low-entry level, to more significant online business. This is particularly true in the creative industries, and although there are clearly advantages to city based creative industry hubs, there are significant cost savings associated with more remote working in areas such as Tredegar. Remote working could, with employer cultural change, especially in the public sector, ensure that people are able to continue to live and work in Tredegar and other locations like it, whilst also minimising the environmental impacts of long commutes and public transport pressures. All of these, we suggest, not only help to boost the local economy, but also limit environmental impacts.

7

A project should be initiated to develop a low cost ‘meanwhile use’ type office/commercial space in Tredegar to assist the development of a remote working and e-commercial sector. A linked skills centre at the Ebbw Vale Learning Zone should build on the existing provision to rapidly upskill the local population in the potential employment capacity of this sector.

The Deep Place Study also considers the major challenges facing Tredegar in four key areas, including: health, education, housing and transport. Tredegar is a significantly disadvantaged location in terms of health inequalities. Smoking levels, obesity and alcohol abuse are amongst the highest in Wales, as are mental health problems with one in eight adults taking prescription antidepressants. There are high cancer rates, linked to poor lifestyles and late presentation of symptoms. Suicide rates are also comparatively high.

The ‘causes of the causes’ of these inequalities are economically and socially determined, and they have both economic and social costs.

Consequently, we argue that public health policy needs to be underpinned by a comprehensive anti-poverty strategy that addresses the gross inequalities that have come to characterise Welsh society. We also suggest that, where possible, local procurement

of goods and services should be actively pursued. However, the NHS and clinicians are only part, albeit an important part, of the solution to overcoming health inequalities. Also of significant importance are sustainable communities and engaged local people, and international evidence has shown that the greater the engagement of local populations with their own health, the more significant the benefits. We therefore argue for a strong coproduction approach to health and social care in Tredegar, not only as a means for securing community engagement with public health interventions, but also as mechanism to supporting the foundational economy.

The Blaenau Gwent Local Service Board should establish a procurement review process to advance the approaches demonstrated in the Can Do Toolkit and the Value Wales Community Benefit Toolkit. All opportunities should be taken to advance the creation and development of local supply chains and targeted recruitment and training opportunities, which focus on long-term unemployed local people and young people not in education, employment or training (NEET).

This should be approached in collaboration with all LSB members with a key focus on the Aneurin Bevan Local Health Board, but also include Blaenau Gwent CBC and the police authority. The Review should include liaison with local SME organisations, the third sector and organisations capable of initiating co-operatives and social enterprises, for example the Coalfields Regeneration Trust and the Wales Cooperative Centre.

Full evaluation of the Community Health Champions Programme should be conducted to establish the evidence for the perceived advantages of this approach. If a positive evaluation is achieved, the programme should be significantly extended and more comprehensively funded to enable a higher skills base and a developing range of potential capacities of the Champions. In particular, attention should be paid to increasing sign-posting and referral skills as a direct approach to improving early presentation behaviours in the critical areas of diabetes, cancer and heart disease prevention.

There are major educational attainment gaps between the people of Tredegar and the more affluent areas of Wales. The local education service has been judged as failing and has been placed in special measures. Tredegar is, of course, not alone and across the UK children from the lowest income families are half as likely to get five good GCSEs and study subsequently at university (Sharples, et. al., 2011). Egan (2013) has argued that in order to successfully close the poverty gap in education, there need to be interventions as part of a holistic strategy involving schools, families and communities. Another key consideration relates to the type of skills taught and the methods by which they are advanced. Previous research undertaken by CREW into

learning provision and patterns of local employment, has found elsewhere in Wales that there is a significant discrepancy between course provision and local employment opportunities (Adamson and McDougall, 2013). We suggest that there is a major opportunity in Blaenau Gwent to address these issues, as all school sixth forms have been closed and all post-16 educational provision is now provided via the Coleg Gwent Learning Zone campus in Ebbw Vale. In keeping with the general principles of subsidiarity and localisation evident in the report, we support Egan’s (2013) suggestion that there needs to be a Cooperative Educational Trust established to include schools attended by residents of Tredegar.

9

There is significant opportunity in this innovative structure of educational provision in Blaenau Gwent to radically change the learning culture of the region. However, a longitudinal study of how this new educational provision changes attainment levels and skills provision in Blaenau Gwent will be required to allow constant monitoring of impact to inform delivery. It should not be left to an evaluation in several years time when it will be difficult to alter the trajectory of the way services develop in this new environment.

In addressing the current educational performance of the region, Welsh Government, Blaenau Gwent CBC, and the Special Measures Team should assess the potential for and interest in the development of a Co-operative Educational Trust to include all the schools in the region.

Provision of housing services including construction, repair, renovation and low carbon retrofitting also provides considerable opportunity to promote local economic development. Despite the high levels of owner-occupation in parts of Tredegar this is not a guarantee of good quality housing.

The traditional Valleys housing stock is now aging and in many instances in poor repair.

Housing Renewal Areas have been used to good effect in other areas of Wales, and whilst criticisms can be made of a purely physical ‘enveloping’ approach, it can do much to restore confidence and pride in a community. Clearly, there are overlaps here with the discussion of measures to improve carbon performance of homes, which are also discussed in the report. Economies of scale would suggest a joint approach bringing together a Housing Renewal type intervention together with energy conservation measures. In the case of social housing in the community we can be confident that housing quality will, or has already, reached the Welsh Housing Quality Standard. Some areas of Tredegar

also have high levels of private sector rented accommodation and historically this has produced some of the poorest quality accommodation in the housing market. The most critical issue currently in housing is the extent of supply, particularly of affordable homes, but there appears to be little interest amongst private house builders in building in the area. We suggest that Blaenau Gwent CBC should explore mechanisms for securing private sector interest in both rental and market sale provision by the local authority undertaking a ‘de-risking’ strategy on its development land assets, as has been witnessed in Birmingham. We further recommend that opportunities should be taken to assess the value of combining self-build approaches with cooperative principles to further develop local housing supply.

Blaenau Gwent CBC should explore the Birmingham model as a potential mechanism for securing private sector interest in both rental and market sale provision by the local authority undertaking a ‘de-risking’ strategy on its development land assets.

A review of the achievements in the Welsh Government funded cooperative housing pilot areas should be used to determine the capacity of cooperative measures to create housing development. Opportunities should also be taken to assess the value of combining self-build with cooperative principles, and also for assimilating the findings of the current Task and Finish Group assessing the potential for the development of the Welsh timber frame housing sector.

Public transport in Tredegar is limited and expensive, and it is not surprising that the percentage of people who travel to work by car or van is higher than the South Wales despite low levels of car ownership.. Although it is clearly necessary to understand transport demands to facilitate planning, collapsed aspirations and low levels of economic activity suggest that it is impossible to say what the unrealised transport needs are. Transport affordability must also more closely be considered, particularly for those on low incomes or seeking to return to the labour market. Walking and cycling can provide a sustainable transport solution to access local services and employment and are largely within the control of people themselves. However, there are limitations in terms of travel distances and there is a need for investment in safe walking and cycling routes. Whereas local authorities currently have a limited role in planning rail services or commercial bus routes, they do have a more significant role in planning local road improvements. Larger more strategic road improvements, however, tend to be controlled by Welsh Government, including the current £300m Heads of the Valleys Road Programme. This can lead to a disconnect between the needs of the local economy and strategic road improvements designed to have wider regional

impacts, such as the proposed M4 relief road at Newport. We agree that the Cardiff Metro proposals represent a realistic option for improved regional connectivity in South Wales, but there are some key issues it would need to address. We suggest in the report that one of these considerations is the issue of ownership and control. The report also considers Demand Responsive Transport (DRT), which could be used to tackle a number of policy objectives, such as improving accessibility and addressing social exclusion.

We suggest that a comprehensive 10-year travel plan for the Study area is produced, which aims at an integrated, sustainable and affordable travel menu for local communities. Any such planning process would not only need to recognise the emerging Cardiff City Region Metro proposals, but would also need to consider local transport options to support the development of the foundational economy within the Tredegar and Blaenau Gwent area.

Transport affordability must also more closely be considered, particularly for those on low incomes or seeking to return to the labour market.

11

The report also considered the important role of governance. We are influenced by the strong European evidence that there needs to be a clear connection between the different spatial levels in the governance model. Whether we term this spatial planning or regional planning is perhaps unimportant, but the need to coordinate activities and develop synergies between the actions of national, regional and community patterns of governance is essential. Despite the demise of the Wales Spatial Plan, there is an array of spatially oriented policy developments including Enterprise Zones, Local Growth Zones, City Regions, and the Wales Infrastructural Investment Plan (WIIP). Bills under consideration include the Future Generations Bill and the Planning Bill, both of which could have major implications for the models of governance required in Wales.

We support the objectives of the Williams Commission recommendations, but believe they have not gone far enough.

In order to deliver a Deep Place solution we argue it would be necessary to have single authorities, not just fewer and larger local authorities, seeing the merger of local authorities, police authorities, fire authorities and local health board functions. This would permit the development of Total Place approaches and also foster more coherent governance at local, regional and national level.

The report argues that governance for resilient and sustainable places should be inclusive and seek to engage local citizens with the management of their public realm. In recent years the community empowerment agenda has been increasingly framed within the co-production approach. Our conclusion is that there need to be multiple local organisations, collaborating and planning in synergy to develop and maintain the kind of community we have envisaged for Tredegar in 2030. We suggest that this requires a very different perspective from the normal approach to power at community level and is dependent on a willing and open ability to share power and work for common objectives. In the immediate to medium term we recognise the need to develop the role of the Town Council and foster the emergence of a local anchor organisations to develop between them a Place Plan that addresses the physical, social, cultural

and environmental futures of Tredegar. We argue that the proposed Planning Bill and the Place Plans approach will require extending to include social and economic issues, as well as the simple physical planning of the community. We also argue that more strategic regional planning and connections to a ‘polycentric’ city region create the potential for economic development along with reform and improvement of public services.

In the longer term we identify a need for a clear process of ‘double devolution’, in which a level of autonomy for this tier of local government is developed.

We are very conscious that the report’s proposals fall in the most hostile financial climate of the last fifty years. The impact of the UK Government’s welfare reform has been estimated by Welsh Government to have currently taken almost £1 billion from the Welsh economy. The ability of Welsh Government to compensate for such polices is limited, and as the austerity programme translates into cuts to the Welsh Government budget, the knock on effect for local authorities will create formidable challenges for service delivery in places such as Tredegar. In this light we fully support the recommendations of the Silk Commission for extended powers for Welsh Government to include borrowing and taxation powers.

We recommend that in its response to the Williams Commission the Welsh Government adopts a spatial planning perspective to identify the optimum structure for local government to permit regional specialisms, emergent city regions and appropriate infrastructural investments.

In the context of larger ‘county’ level local authorities, major attention to the local levels of governance will be required to include examination of the role of community and town councils. This will be critical to provide local autonomy, subsidiarity of decision-making and empowerment of local communities and organisations.

13

Tredegar Town Council should develop its skills and capacity to undertake economic, social and cultural leadership of a range of community organisations that currently contribute to civil society in Tredegar. The objective should be the emergence of a common and shared vision for Tredegar.

The local third sector organisations should consider a major programme of merger and integration to develop a ‘community hub’ with a significant portfolio of local action. Whilst the Development Trust model has previously failed in the locality we believe this to be the best organisational framework to allow for this to occur.

Welsh Government should use the Planning Bill to enhance the proposal for Place Plans to embrace key issues of housing renewal, community energy strategies, economic development and socio-cultural renewal.

An approach to place-based delivery should be developed which builds on current place-based programmes to unify a group of currently distinct policies at the local level. Learning from all current programmes should be aggregated and explored to inform the development of a Welsh Model of Total Place. The Place Group formed by the Commissioner for Sustainable Futures should lead this exercise as a formal Task and Finish Group or a Ministerial Advisory Group reporting to the First Minister. Tredegar could be established as a pilot delivery model to fully test the approach.